HUMAN

RESOURCE
S AS A
CRITICA
Presented by: Angelica faye S. Encallado
01. Introduction
02. Theory of constraints
03. The Basis for Government
Intervention
04. Economic Growth and
Development
INTRODU
CTION
Human resources are essentials in providing
labor to produce goods and services in an
economy. it involves various elements, such
as knowledge, experience and skills which
enable labor to be effective in
manufacturing and generating profit.
 HUMAN
in general means the population of the country. but in

RESOUCE
economics human resources means healthy, skilled and
educated man power. therefore human resources is the

S
procedure for refining the quality and competency of
people. “According to the National Planning Commision,“
Human resource is the knowledge, skill, efficiency and
physical and mental capacity to do work inherent in the
people of the country”
 THEORY OF
CONSTRAINT
The Theory of Constraints is a methodology for identifying
the most important limiting factor that stands in the way of
achieving a goal and then systematically improving that

S
constraint until it is no longer the limiting factor. In
manufacturing, the constraint is often referred to as a
bottleneck.
 THEORY OF
CONSTRAINTS -
• Identify the constraint
TOC
• Exploit the contraint
• Subordinate everything else
to the constraint
• Elevate the constraint
• Repeat by finding the next
constraint
Step Objective
Identify the current constraint (the single part of the
Identify process that limits the rate at which the goal is achieved.

Make quick improvements to the throughput of the

Exploit constraint using existing resources.

Review all otheer activites in the process to ensure that they

Subordinate are aligned with and truly support the needs of the constraint.

If the constraint stillexists, consider what further actions can

Elevate be taken to eliminate it from being thec constraint.

once a constraint is resolved the next constraint should

Repeat immediately be addressed.
 DR. ELIYAHU
GOLDRATT
he conceived the Theory of constraints (TOC) and
introduced it to a wide audience through his bestselling
1984 novel,
one of the appealing characteristics of the theory of
constraints is that it inherently prioritizes improvement
activities. TOC offers a highly focused methodology for
creating rapid improvement.
 The Production Possibilities
Curve (PPC) is a model that
captures scarcity and the
opportunity costs of choices
when faced with the possibility
of producing two goods or
services. Points on the interior of
the PPC are inefficient, points on Production possibilities and
the PPC are efficient, and points curve
beyond the PPC are unattainable
 Real Estate
FORMS OF Cash
Savings Accounts
INVESTMENT
Mutual funds
Alternative
Investment
Debt
 MARKET FAILURE
POLICY
Market failures can justify government intervention on
market efficiency (economic) criteria. A key type of
market failure that government tries to address in
regulations and laws are externalities. Government
policies are also used to address societal concerns that
are associated with private market economies, such as
economic inequalities.
 EXAM
PLE
Oil and oil sales and consumption can have high external costs to society
beyond the price charged by the oil company. The pollution from oil use has
external costs. And oil use can increase dependency on foreign resources,
including on foreign countries with repressive governments.
An example of such a subsidy would be the government
assisting with the development of clean energy or a new
technology that helps to reduce greenhouse gas emissions
and the societal costs associated with greenhouse gas
emissions. The government support could encourage
greater entrepreneurial pursuit and investment in
innovation and new technologies in renewable energy
and energy efficiency, and society could benefit.
CAUESES OF MARKET
FAILURE
Environmental Issues
Barriers to entry
Individualities
Market control
Property rights
 WHY IS GOVERNMENT
INTERVENTION NEEDED
IN AN ECONOMY?
The government may consider intervening in the economy if one
company has a monopoly, or control of an entire market. Having one
company with a monopoly can result in overpricing of products because
there are no competitors. They may also intervene when the conditions
of poverty are worsening, or when the overall economy is doing poorly
 MONEY
INFLATION
AND
As inflation falls, so do interest rates. It becomes less expensive to borrow

INTEREST
money, thus there's more money circulating in the economy. Since supply
remains relatively constant, demand for goods and services increases—thus

RATE
increasing prices and inflation. Then when inflation trends upward, interest
rates rise to fight back. It becomes more expensive to borrow money—meaning
there's less in circulation. As an inevitable result, inflation once again sinks
alongside demand.
ECONOMIC DEVELOPMENT ECONOMIC GROWTH
• Multi dimensional • Single Dimensional.
• Qualitative change; composition • Quantitative changes; change
and distribution of national income. in national and per captain
• Gradual and steady change,
income.
planned.
• spontaneous change
• continous change.
• Growth is prerequisite for
• Discontinous change.
development • Growth is possible without
• Solution to the problemof development.
underdevelopmed countries • Solution to the problem of
• Economic and non economic developed.
factors • Economic Factors.
THANK
YOU!
 RESOURCES LINK
https://saylordotorg.github.io/text_the-sustainable-business-case-book/s07-03-market-failures-
and-the-role-o.html

https://www.leanproduction.com/theory-of-constraints/

https://study.com/academy/lesson/government-intervention-in-the-economy-issues-factors.html
#:~:text=Reasons%20for%20Government%20Intervention%20in%20the%20Economy,-There
%20are%20many&text=They%20may%20do%20so%20in,raise%20or%20lower%20interest
%20rates.
QUESTION
S:
WHAT IS YOUR
INSIGHTS ABOUT THE
LESSONS?